Exhibit 99.3

 

 NATIONAL WASTE MANAGEMENT HOLDINGS, INC.

PRO FORMA CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2015

(UNAUDITED)

 

   National Waste Management Holdings, Inc.   Waste Recovery Enterprises, LLC   Gateway Rolloff Services, LP   Pro-forma Adjustments   Pro Forma Consolidated 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
                     
Assets                    
                     
Current assets:                    
Cash and cash equivalents  $471,514   $30,320   $132,108    (100,000) (a)  $533,942 
Accounts receivable, net   217,172    115,618    203,727         536,517 
Other current assets   10,010    45,276    -         55,286 
Due from related party   8,400    46,018    -         54,418 
                          
Total current assets   707,096    237,232    335,835    (100,000)   1,180,163 
                          
Property and equipment, net   672,627    688,997    -         1,361,624 
                          
Other assets:                           
Intangible assets, net   45,905    -    -         45,905 
Secured letter of credit   324,950    -    -         324,950 
Deposits on landfill acquisition   225,000    -    -         225,000 
Other deposits   8,750    -    -         8,750 
Other assets   -    -    -         - 
Note receivable due from related party   -    -    -         - 
                          
Total other assets   604,605    -    -         604,605 
                          
Total assets  $1,984,328   $926,229   $335,835    (100,000)  $3,146,392 
                          
Liabilities and Stockholder's Equity (Deficit)                         
                          
Current liabilities:                         
Accounts payable and accrued expenses   65,461    67,314    231,147         363,922 
Current portion of long term debt   -    127,713              127,713 
Current portion of capital lease obligations   24,093    -              24,093 
Due to related party - accrued interest   27,841    606,312         (606,312) (b)   27,841 
Due to related party   -    30,000    26,000         56,000 
Income taxes payable   126,287    -    -         126,287 
                          
Total current liabilities   243,682    831,339    257,147         725,856 
                          
Long-term liabilities:                         
Long term debt, net of current portion   -    127,173    -         127,173 
Capital lease obligations, net of current portion   109,614    -    -         109,614 
Environmental remediation obligation   424,596    -    -         424,596 
Loan due shareholder or member   704,547    906,442    -    606,312  (b)   2,467,301 
                   250,000  (c)    
Long term deferred tax liability   48,709         -         48,709 
                          
Total liabilities  $1,531,148   $1,864,954   $257,147    250,000   $3,903,249 
                          
Commitments and Contingencies                         
Stockholders' equity (deficit):                         
Common stock, no par value; 250,000,000 shares authorized, 60,451,842 shares issued and outstanding at September 30, 2015  $-   $-   $-        $- 
Preferred stock, no par value, 10,000,000 shares authorized, 1 share and 0 shares issued and outstanding as of June 30, 2015   -    -    -         - 
Additional paid-in capital   267,496    -    -    (250,000) (c)   367,496 
                   450,000  (d)     
                   (100,000) (a)     
Common stock subscribed   113,640    -         (450,000) (d)   (336,360)
Members' deficit   -    (938,725)   -    937,729  (e)   (996)
Partners' capital   -         78,688    78,688  (e)   157,376 
Retained earnings (deficit)   72,044              (1,016,417) (f)  (944,373)
                          
Total stockholders' equity (deficit)   453,180    (938,725)   78,688    (350,000)   (756,857)
                          
Total liabilities and stockholders' equity  $1,984,328   $926,229   $335,835    (100,000)  $3,146,392 

  

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NATIONAL WASTE MANAGEMENT HOLDINGS, INC.

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015

(UNAUDITED)

 

   National Waste Management Holdings, Inc.   Waste Recovery Enterprises, LLC   Gateway Rolloff Services, LP   Pro-forma Adjustments   Pro Forma Consolidated 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
                     
Revenues     $1,349,824   $1,033,296   $1,741,513   $-   $4,124,633 
                          
Cost of revenues   661,622    608,299    1,121,188    -    2,391,109 
                          
Gross profit   688,202    424,997    620,325    -    1,733,524 
                          
Selling, general and administrative expenses   380,775    399,159    728,195    -    1,508,129 
                          
Income from operations   307,427    25,838    (107,870)   -    225,395 
                          
Other income (expenses):                         
Gain on sale of assets   -    28,040    -    -    28,040 
Extinguishment of related party debt   -    (236,100)   -    -    (236,100)
Interest expense   (23,705)   (39,311)   -    -    (63,016)
Other Income (expenses)   (4,807)   2,504    611    -    (1,692)
                          
Total other income (expenses)   (28,512)   (244,867)   611    -    (272,768)
                          
Income before income taxes   278,915    (219,029)   (107,259)   -    (47,373)
                          
Income tax expense   94,045    -    -    -    94,045 
                          
Net income   $184,870   $(219,029)  $(107,259)  $-   $(141,418)
                          
Net income per common share:                         
Basic     $0.003             $-   $(0.002)
Diluted      $0.003             $-   $(0.002)
                          
Weighted average number of shares outstanding                         
Basic      60,451,842              5,150,000 (g)   65,601,842 
Diluted       60,451,842              5,150,000 (g)   65,601,842 

 

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NATIONAL WASTE MANAGEMENT HOLDINGS, INC.

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2014

(UNAUDITED)

 

   National Waste Management Holdings, Inc.   Waste Recovery Enterprises, LLC   Gateway Rolloff Services, LP   Pro-forma Adjustments   Pro Forma Consolidated 
                     
Revenues     $1,668,354   $1,502,290   $2,300,303   $-   $5,470,947 
                          
Cost of revenues   934,251    926,588    1,532,492    -    3,393,331 
                          
Gross profit   734,103    575,702    767,811    -    2,077,616 
                          
Selling, general and administrative expenses   485,403    538,393    652,918    -    1,676,714 
                          
Income from operations   248,700    37,309    114,893    -    400,902 
                          
Other income (expenses):                         
Gain on sale of assets   -    80,000    -    -    80,000 
Interest expense   (10,610)   (55,697)   -    -    (66,307)
Other income   -    -    16    -    16 
Other expenses   -    1,880    (87)   -    1,793 
                          
Total other income (expenses)   (10,610)   26,183    (71)   -    15,502 
                          
Income before income taxes   238,090    63,492    114,822    -    416,404 
                          
Income tax expense   80,951    -    -    67,759 (g)   148,710 
                          
Net income   $157,139   $63,492   $114,822   $(67,759)  $267,694 
                          
Net income per common share:                         
Basic     $0.003   $              $0.004 
Diluted      $0.003   $              $0.004 
                          
Weighted average number of shares outstanding                         
Basic      60,054,444              5,150,000 (h)   65,204,444 
Diluted       60,054,444              5,150,000 (h)   65,204,444 

 

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NATIONAL WASTE MANAGEMENT HOLDINGS, INC.

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2013

(UNAUDITED)

 

   National Waste Management Holdings, Inc.   Waste Recovery Enterprises, LLC   Gateway Rolloff Services, LP   Pro-forma Adjustments   Pro Forma Consolidated 
                     
Revenues  $1,262,506   $1,392,323   $1,863,387   $   $4,518,216 
                          
Cost of revenues   576,764    868,771    1,359,595         2,805,130 
                          
Gross profit   685,742    523,552    503,792    -    1,713,086 
                          
Selling, general and administrative expenses   515,987    503,377    786,179        1,805,543 
                          
Income from operations   169,755    20,175    (282,387)   -    (92,457)
                          
Other income (expenses):                         
Other income   -    3,327    310,922         314,249 
Other expenses   (9,519)   -    -         (9,519)
Gain on sale of assets   10,800    12,444    -         23,244 
Interest expense   -    (63,095)   -         (63,095)
                          
Total other income (expenses)   1,281    (47,324)   310,922    -    264,879 
                          
Income before income taxes   171,036    (27,149)   28,535         172,422 
                          
Income tax expense   -    -    -         - 
                          
Net income  $171,036   $(27,149)  $28,535   $-   $172,422 
                          
Net income per common share:                         
Basic  $0.004                  $0.003 
Diluted  $0.004                  $0.003 
                          
Weighted average number of shares outstanding                         
Basic   47,450,000              5,150,000    52,600,000 
Diluted   47,450,000              5,150,000    52,600,000 

 

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NATIONAL WASTE MANAGEMENT HOLDINGS, INC.

NOTES TO THE PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

 

(1)Basis of Presentation

 

On October 27, 2015 and December 1, 2015, National Waste Management Holdings, Inc. (the “Company”, “NWMH, Inc.”) acquired Waste Recovery Enterprises, LLC and Gateway Rolloff Services, LLC, respectively. The Chairman of the Company, who is also the largest individual shareholder of the Company, owned 50% of each of these entities prior to closing on the acquisitions; these entities had a high degree of common ownership but were not considered to be under common control, as the ownership percentages and interests are not the same before and after the transaction, and thus a substantive transaction has occurred with economic substance and should be accounted for using the acquisition method of accounting in accordance with the guidance included in the Accounting Standards Codification (“ASC”) 805, Business Combinations. The acquisition method of accounting requires assets and liabilities to be recorded at fair value, including intangible assets, with goodwill as the residual. As of the date of the filing, the purchase price allocation was not complete or available as related to these acquisitions. The pro-forma financial statements are based on the unaudited historical performance of the Companies as of and for the nine months ended September 30, 2015, as well as the financial statements as of and the for the years ended December 31, 2014 and 2013 subject to pro-forma adjustments discussed in Note 2. Assets and liabilities of the acquired entities have been recorded at cost for pro-forma purposes and will be adjusted to fair value once the purchase price allocation is complete.

 

These unaudited pro forma financial statements have been prepared in accordance with accounting principles generally accepted in the United States and are expressed in U.S. dollars. These pro forma financial statements do not contain all of the information required for annual financial statements. Accordingly, they should be read in conjunction with the most recent annual and interim financial statements of the Company and Sandland.

 

These unaudited pro forma financial statements have been compiled from and include:

 

(a)an unaudited pro forma balance sheet combining the unaudited interim consolidated balance sheet of the Company, Waste Recovery Enterprises, LLC and Gateway Rolloff Services, LP as of September 30, 2015, giving effect to the transaction as if it occurred on the respective balance sheet date.

 

(b)an unaudited interim pro forma consolidated statement of operations combining the unaudited statements of operations of the Company, Waste Recovery Enterprises, LLC and Gateway Rolloff Services, LP for the nine months ended September 30, 2015, and the audited annual statements of operations of the Company and Waste Recovery Enterprises, LLC and Gateway Rolloff Services, LP for the years ended December 31, 2014 and 2013.

 

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NATIONAL WASTE MANAGEMENT HOLDINGS, INC.

NOTES TO THE PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

 

(2)Basis of Presentation

 

The unaudited pro forma financial statements have been compiled using the significant accounting policies as set out in the unaudited financial statements of the Company, Waste Recovery Enterprises, LLC and Gateway Rolloff Services, LP for the nine months ended September 30, 2015. It is management’s opinion that these pro forma financial statements include all adjustments necessary for the fair presentation, in all material respects, of the proposed transaction described above in accordance with United States generally accepted accounting principles applied on a basis consistent with the Company, Waste Recovery Enterprises, LLC and Gateway Rolloff Services, LP’s accounting policies. No adjustments have been made to reflect the fair value of assets and liabilities of the acquired subsidiaries, the fair value of the restricted stock issued as part of the purchase price of the acquisitions or the potential cost savings that may occur subsequent to completion of the transaction. The pro forma statement of operations does not reflect non-recurring charges or credits directly attributable to the transaction, of which none are currently anticipated.

 

The unaudited pro forma financial statements are not intended to reflect the financial position of the Company which would have actually resulted had the proposed transaction been effected on the date indicated.

 

(3)PRO FORMA ADJUSTMENTS

 

The unaudited pro forma consolidated financial statements do not incorporate the following pro forma assumptions and adjustments:

 

(a)Elimination of certain of the Company’s assets and liabilities upon closing the agreement as follows:
a.Cash - $100,000 – due to a working capital adjustment clause requiring the Company to reimburse one of the previous owners for current assets in excess of liabilities to be calculated 30 days after the closing. The expected adjustment is expected to be equal to the maximum threshold of $100,000
(b)This accrued interest will be converted to long term debt
(c)The Company financed $250,000 of the cash portion of these acquisitions with an owner financed note due January 4, 2016
(d)$450,000 of the purchase price of one of the acquisitions was financed by a third party who has been promised stock at $1 per share, totaling 450,000 shares of common stock subscribed
(e)Elimination of partners equity and members in acquired subsidiaries
(f)Tax affects the previously pass through entities at the estimated statutory tax rate of 38%
(g)The Company issued restricted common stock of the Company as a portion of the consideration for the acquisitions. 2,750,000 shares were issued as part of the purchase price of Waste Recovery Services, LLC and 2,400,000 shares were issued as part of the purchase price of Gateway Rolloff Services, LP, for a total of 5,150,000 shares of restricted common stock.

 

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NATIONAL WASTE MANAGEMENT HOLDINGS, INC.

NOTES TO THE PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

 

(4)PRO FORMA EQUITY

 

  Note 3 - Pro Forma Equity            
     Number of       Additional Paid 
     Common Shares   Par Value   in Capital 
  Issued and outstanding common shares of the Company   60,451,842   $-   $267,496 
  Restricted shares issued and note payable to acquire Waste Recovery Services, LLC   2,750,000    -    (250,000)
  Restricted shares issued, cash paid to acquire Gateway Rolloff Services, LP (net of working capital adjustment of $100,000)   2,400,000    -    350,000 
  Pro Forma Balance, September 30, 2015   65,601,842   $-   $367,496 

 

 

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